Regulations Governing Institutions Engaging In Credit Card Business Article 24

A card issuer should formulate different credit risk levels and assign each cardholder a credit risk level in line with their credit standing, and adopt tiered pricing for the interest rates of revolving credit after taking into account the cost of funding and operating costs, and should periodically review the applicable interest rates to respective cardholders at least on a quarterly basis.A card issuer shall specify in the credit card agreement events that will trigger the adjustment of interest rate applicable to a cardholder and that interest rate will be adjusted only if an agreed event has occurred. At the time of rate adjustment, a card issuer shall notify the cardholder of reason for adjustment, the adjusted interest rate, and other relevant information.A card issuer shall periodically review credit cards it has issued at least once every six months.For credit cardholders who opt for revolving credit facility on a long-term basis, a card issuer shall offer the cardholders options on repayment or interest rate adjustment as required by the Competent Authority.